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for health reform last week look at proposals to raise medicare's eligibility age. we will hear from representatives of the kaiser family foundation, aarp, and the american benefits council. this is just over an hour and a half. >> if i can have your attention, we're going to try to get started. my name is ed howard. i'm with the alliance for health reform, and i want to welcome you on behalf of our board of directors and on a very leadership, senators rockefeller and blunt, to a program about proposals to gradually increase the age for medicare eligibility from 65 years to 67. now, it's a topic that's been under discussion for a long time, back when i was on the staff of the then existing house aging committee. this was a topic that came up from time to time. it's particularly coming up now, of course, in light of the ongoing rise in the age for full social security benefits, 65 to 67. and, of course, it's front and center in the current discussions about how to curb the federal deficits and avoid having us fling ourselves over the so-called fiscal cliff in a couple of weeks. we are
proposed cuts to medicare for a hike in the debt ceiling. what do you make of that offer? >> i think one of the things that people don't realize is that it's a dirty little secret. the republicans don't want to cut the things that americans want cut. and they want to cut things that americans don't want cut. poll after poll shown americans do not want deficit reduction done by cutting medicare and medicare and social security. so they propose and saw the same scenario when paul ryan put the budget out and because the american people rejected the kind of draconian cuts that the republicans want to make so, you know, that's a nonstarter in the senate. i think it's a nonstarter with the president. sure can pass the house but going nowhere past that. >> the smaller offer we hear that the president is making at 3:00, to congressional leadership, what kind of offer would you like to see the president make? >> well, there was some rumblings i think an hour ago that there was a -- something brewing i think in the senate that had a $400,000 threshold, that was i think a ten-year duration and also
. that's the bad news. we immediate to deal with the medicare fiscal cliff or you are not going on get your medical bills paid. >> remembering an american original. >> iraqis are dumb muff to attack her going to pay a terrible price. >> nicknamed stormin' norman for his ledgendary temper. he died thursday due to complications from pneumonia. >>> it is a year comes to a close, we look back at the amr moments that left us starstruck and speechless in 2012. >>> good day. i'm luke russert. live in washington, d.c. in for andrea this afternoon is the calm before the economic storm white house officials and congressional leaders have kept quiet. ahead of the pivotal round table discussions we all hope can produce some kind of plan to prevent a fiscal cliff dive in the new year. you guessed it. another day without a deal means more losses on wall street. look at those numbers will. 68 down for the dow. joining for the daily fix, nbc white house correspondent peter alexander. nbc's kelly o'donnell live on capitol hill. and jonathan capeheart. peter, let me start with you. there's this meeting
is up to you. so consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement plans, they help save you up to thousands in out-of-pocket costs. call today to request a free decision guide. with these types of plans, you'll be able to visit any doctor or hospital that accepts medicare patients... plus, there are no networks, and you'll never need a referral to see a specialist. join the millions who have already enrolled in the only medicare supplement insurance plans endorsed by aarp... and provided by unitedhealthcare insurance company, which has over 30 years of experience behind it. with all the good years ahead, look for the experience and commitment to go the distance with you. call now to request your free decision guide. >> word today that 88-year-old former president george hw bush has been moved to the intensive care unit of a houston hospital. he has been in the hospital since november battling a persistent cough. in houston with the latest. charles, hello. why the move to the inte
money in medicare. we're just going to take a little percentage cut each year in how much we would pay doctors and hospitals who treat medicare patients. therefore, we'll reduce the cost of medicare and be done with it. guess what? we had a great idea, but when it came to imposing the law, the doctors and hospitals pushed back and said, wait a minute, we need this compensation for our care of medicare patients. and, therefore, we postponed it. and every year we postponed it, what we were supposed to save we had to come up with from other sources. the so-called doc fix, s.g.r., is another one. like the alternative minimum tax, which has haunted us as we've done these budgets year in and year out. we didn't solve this problem permanently. we solved it for one year. otherwise what would have happened is starting today doctors and hospitals would have seen a reduction in their government reimbursement for treating patients of over 25%. the net result would have been in springfield and chicago, illinois, and across the nation in ohio and california, many doctors and hospitals would have sai
the amt and medicare fix. all that. if the speaker is willing to put that to a vote, i suspect it would pass in the house and we actually could have a compromise before the end of the year. but it would pass with mostly democratic votes. and the likelihood he's going to want to do that seems to me very slim. that's why i think we're probably going over the cliff. now, my hope is that it's more of a bungee jump than a cliff dive. because on the other side there's some dynamics that change such that republicans can vote for a big tax decrease off of what will then be current law. >> jared, you've got a post -- i just want to go back for a moment. while this ping-pong game is going on in washington, you've got a post on your blog showing the real drag this is having on consumer confidence. so, i mean, what can the president do to protect the economy and try to restore some degree of confidence while these negotiations are going on? >> i think it's a really great, important question. and i think what he has to do is continue to press for a compromise. i've always been struck by how strong t
medicare doesn't pay all my medical expenses, i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement plans, it could save you thousands in out-of-pocket costs. call now to request your free decision guide. i've been with my doctor for 12 years. now i know i'll be able to stick with him. you'll be able to visit any doctor or hospital that accepts medicare patients. plus, there are no networks, and you never need a referral. see why millions of people have already enrolled in the only medicare supplement insurance plans endorsed by aarp. don't wait. call now. >>> welcome back, everyone. there won't be any crying over spiped milk. congress could vote as soon as today on a farm bill that extends price supports for milk. without them, the cost of a gallon would have doubled. the deal was reached yesterday. i
of the fundamental ways in which the republicans wanted to change medicare and raise taxes on people over $250,000. he won the election and people from the very red districts elected in the house simply have not adapted to that reality. >> let me go to jonathan chait and the primal scream and the election president obama won, but you wouldn't know this in washington. doesn't it feel sometimes like one side experienced maybe a different election? >> they did. for the house republicans, they don't have to worry about public opinion. the house republicans got fewer votes than house democrats, but the house republicans won anyway because the districts are drawn in such a way the vast majority of republicans are insulated from public opinion. this conversation we're having of what do the republicans have to do to win back middle america, that's not relevant to them. the only thing they have to worry about is a tea party challenger. that's the only way these guys are going to lose. that's point number one. point number two, no evidence the republican party really wants to cut the main entitlement pr
ceiling fight where medicare and taxes will be fought over. do these people not learn anything from 2011 when the credit worthiness of this nation was downgraded and markets crashed because of what they were doing? >> well, apparently not. and i'm glad you frame it that way. i feel like a lot of the discussion has just assumed that it's appropriate to use the debt ceiling as a bargaining chip. i mean, you are threatening default. you are threatening a worldwide global economic calamity. and republicans now just as a matter of business think this is okay to do and that there's not going to be any pushback. i think that they fundamentally miscalculate there. because not only are you doing something hugely unpopular by holding the country hostage over the debt ceiling, but in order to cut social security and medicare benefits? >> oh, yes. >> i think that is hugely unpopular. they're not going to be let off the hook by spelling out exactly what they want to cut and how. i don't see it going down well for them in the end. >> you don't? jimmy? >> this is a charade. it was a charade. you had a
is a new tax under the president's health care reform law that we talked about, a 3.8% medicare surcharge on investment income for individuals making more than 200,000 a year. families making more than $250,000. the tax that hits all taxpayers, lower income as well as upper, is the expiration of the payroll pax cuts from the last two years. add all of this up for households earning $# 500,000 to a million a year, and according to the tax policy center, their taxes are up by an average of $14800 this year, liz. liz: great. okay. listen, it is what it is. it's a quote from britney speers. >> wait until we get to the million dollar bracket. liz: we'll watch that too. listen, we love all the tax bracket viewers, doing it all day long, and good for you for at least bringing the exact numbers. peter's done the homework and numbers crunching. stay tuned every hour. thank you, peter, appreciate it. >> thank you. liz: ceos putting the vice grips on washington, at least verbally to get the economy back on track starting with the cliff so now that we've got a deal, is it a deal that will help them?
. [ male announcer ] eligible for medicare? that's a good thing, but it doesn't cover everything. only about 80% of your part b medical expenses. the rest is up to you. so consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement plans, they pick up some of what medicare doesn't pay. and save you up to thousands of dollars in out-of-pocket costs. call today to request a free decision guide to help you better understand what medicare is all about. and which aarp medicare supplement plan works best for you. with these types of plans, you'll be able to visit any doctor or hospital that accepts medicare patients... plus, there are no networks, and you'll never need a referral to see a specialist. there's a range of plans to choose from, too. and they all travel with you. anywhere in the country. join the millions who have already enrolled in the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations... and provided by unitedhealthca
when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call now and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement plans, it helps pick up some of what medicare doesn't pay. and could save you thousands in out-of-pocket costs. to me, relationships matter. i've been with my doctor for 12 years. now i know i'll be able to stick with him. [ male announcer ] with these types of plans, you'll be able to visit any doctor or hospital that accepts medicare patients. plus, there are no networks, and you never need a referral to see a specialist. so don't wait. call now and request this free decision guide to help you better understand medicare... and which aarp medicare supplement plan might be best for you. there's a wide range to choose from. we love to travel -- an
more taxes it imposes more of a burden to cut spending, reduce expenditures in medicare and other areas. becomes very problematic for a lot of working family. >> o'donnell: senator coburn, what are you hearing from your republican leader? he of has he come up with a deal? >> we haven't heard anything, just minimal in terms of what's going back and forth. i think they're far apart. i don't think anybody knows what's going to happen. the odds are that we've not seen the leadership on either side of aisle to solve this problem, and why would we think we're going to see the leadership in the next 24 hours to solve the problem? but i would take issue with dick-- the characterization is we're the-- no matter where we raise taxes, what's going to happen to the money? we're going to grow the government with it. we're not going to reduce the deficit because we refuse to solve the bigger problems like saving medicare, insuring social security disability. we're not going to use that money to do anything except continue to grow the government. so the characterization is that we're-- what we're want
, medicare cuts the president put a lot out there, upwards of hundreds of billions in cuts. are you worried republicans will ask for those in exchange for raising the debt limit? >> i will say again the debt ceiling is not going to be a component of these negotiations. the president has made that clear, the vice president in the caucus meeting made that clear. what is going to be essential and what will be an element is whatever we do going forward, the fiscal cliff deal that we passed last night is one step forward toward a balanced approach. the republicans need to understand that now we're not going to turn to spending cuts only. thing we do going forward is going to need to have balance, balance in revenue and spending cuts. there's still going to be more pain toward deficit reduction on the backs of the middle class. >> it's the day after the cliff deal because it came at 11:59 last night. >> sure did. >> grover norquist had this tweet where he essentially said the bush tax cuts lapsed at midnight, every r voting for the senate bill is cutting taxes and keeping his/her pledge. democrat
be on the table in washington? the latest on medicare, next. >> rich edson is on capitol hill keeping track of all this for us. rich, i understand the house republicans came out a little while ago from a meeting they had called. what was the resolution there and we also understand everyone is heading back to the house floor. what are the plans for there? >> there are two options. that seems to be the north here. a plan a and plan b. the plan a for pub pbs right now is basically to amend this proposal. they have a package of spending cuts that they could attach to this proposal and as democrats would say, kill it. what they will do now is see if they have enough votes, 218 votes among republicans to get the package of spending cuts attached to the bill that passed the senate last night. if they do not have the 218 votes to do that they will take an up-or-down vote on the senate proposal from last night. if it passes then it goes to the president's desk. now if republicans are successful in attaching these spending cuts to the senate-passed bill, that means it has to go back to the senate. well sena
of a campaign where democrats were attacked by the other side of taking $800 billion out of medicare and republicans were promising to restore that funding. they were also promising to increase defense spending by $2 trillion over ten years so they have to be realistic and spending cuts that they are willing to offer, that we need to log onto and jump into and we need to go big. the economic certainty lacking right now, and to help the economic recovery and held the job creation with that we desperately need. that is the desperate thing we can do to get the fiscal house in order. connell: let me ask before i let you go because i will talk to congressman king about this coming up, we talk so much about spending cuts, the idea that the spending bill for hurricanes and the victims couldn't make it to the house floor last night. what is your view on that? >> we need to address it. hopefully friday, later this week we will have a chance. the senate is waiting for the house but this was a major disaster, the worst disaster to hit the new england area in our lifetime, time for congress to s
that the entire burden of deficit reduction doesn't fall on seniors who are relying on medicare. i also have an obligation to make sure that families who rely on medicaid to take care of a disabled child aren't carrying this burden entirely. i also have an obligation to middle-class families to make sure that they're not paying higher taxes when millionaires and billionaires are not having to pay higher taxes. there is a basic fairness that is at stake in this whole thing that the american people understand and they listen to an entire year's debate about it. they made a clear decision about the approach they prefer, which is a balanced, responsible package. they rejected the notion that the economy grows best from the top down. they believe that the economy grows best from the middle class out. and at a certain point, you know, it is very important for republicans in congress to be willing to say, we understand we're not going to get 100%. we are willing to compromise in a serious way in order to solve problems as opposed to be worrying about the next election. >> you said that republicans
are relying on medicare. i also have an obligation to make sure that families who rely on medicaid to take care of a disabled child aren't carrying this burden entirely. i also have an obligation to middle class families to make sure that they're not paying higher taxes when millionaires and billionaires are not having to pay higher taxes. there is a basic fairness that is at stake in this whole thing that the american people understand, and they listened to an entire year's debate about it. they made a clear decision about the approach they prefer, which is a balanced, responsible package. they rejected the notion that the economy grows best from the top down. they believe that the economy grows best from the middle class out. and at a certain point, you know, it is very important for republicans in congress to be willing to say we understand we're not going to get 100%. we are willing to compromise in a serious way in order to solve problems as opposed to being worried about the next election. >> you said that republicans have a hard time saying yes, particularly to you. >> yes. >> what
't pay the alternative minimum tax would pay the amt and that doctors who treat medicare patients would automatically get a major pay cut beginning at the year. all that is basically spending and tax cuts that congress does at the end of every year anyway. that deficit number, while it is striking, it's basically what the can present to from the congressional budget office assumes congress will do every year. they just can't by law say that will happen because it's not in law. we don't do much long-term was bank. when you said that congresswoman louise slaughter is hoping to get this done before markets over, there will be a vote before markets opened. we may be getting a vote before the end of the day. baboon that's the time we expect the house will vote on this proposal. the senate-passed proposal. if the house can pass this, that means it goes to the president's desk for his signature and then we move on to the debt ceiling fight. there was some congressional trauma going down a few hours ago, this after congressional republicans looked at the steel and said, there aren't enough spen
." [ male announcer ] eligible for medicare? that's a good thing, but it doesn't cover everything. only about 80% of your part b medical expenses. the rest is up to you. so consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement plans, they pick up some of what medicare doesn't pay. and save you up to thousands of dollars in out-of-pocket costs. call today to request a free decision guide to help you better understand what medicare is all about. and which aarp medicare supplement plan works best for you. with these types of plans, you'll be able to visit any doctor or hospital that accepts medicare patients... plus, there are no networks, and you'll never need a referral to see a specialist. there's a range of plans to choose from, too. and they all travel with you. anywhere in the country. join the millions who have already enrolled in the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations... and provided by unitedhealthca
% of americans can be protected from a tax increase. we can protect seniors under medicare by making sure that 30% cut to the providers don't go through. the alternative minimum tax which all of us, again, agree should not apply to 26 million americans. we agree on that. let's vote on that. let's create that certainty and move forward. let's create a path to move forward to deal with comprehensive tax policy in a fair and responsible way and let's deal with the deficit and the balance in a fair away. john boehner basically said no to all of that. and that's really not acceptable leadership. >> is there any -- should harry reid amend the bill that the house sent over at all? the fact is, harry reid has -- needs to add republican cooperation. he wants to say, look, this isn't a game. this isn't show. you know, i can bring out a bill, pass a bill. if john boehner says i'm not going to look at that, what's the point? let's make something happen here. that is what the american people are looking for. we're concerned about the fiscal and economic policies. there's a recovery period that we're experienc
long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call now and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement plans, it helps pick up some of what medicare doesn't pay. and could save you thousands in out-of-pocket costs. to me, relationships matter. i've been with my doctor for 12 years. now i know i'll be able to stick with him. [ male announcer ] with these types of plans, you'll be able to visit any doctor or hospital that accepts medicare patients. plus, there are no networks, and you never need a referral to see a specialist. so don't wait. call now and request this free decision guide to help you better understand medicare... and which aarp medicare supplement plan might be best for you. there's a wide range to choose fro
on unemployment who face that being turned off at the end of the year. a medicare doc fix as they call it and a turnoff of the sequester in exchange for some larger spending cuts tpd. that is the outline of what a small deal could look like. guys, we don't have a whole lot of information on what's going to happen in that meeting. i should also mention that joe biden, the vice president, will be in there. of course, he led some of the early talks and they were all about trying to avoid this problem a year or more ago. those got nowhere. the talks over the summer got nowhere and so far the talks that are going on now have gotten nowhere as well, michelle. >> eamon, the last two things that you talked about, the doc fix for medicare, you don't cut what you pay doctors for medicare. >> that's right. >> turning off the sequester, they're talking about spending more money. no talk anywhere in his plan about any kind of spending cuts. >> yeah. remember, i'm laying out sort of a potential plan that the president could offer. you're right about those two items. also take a look at what's not on
in medicare payments from the sequestration that's coming up in the next couple of months, but other than that it's pretty much all green. guys, back to you. >> all right, bob. thank you very much is this very strong start to the year a good omen for the rest of 2013? >> let's find out from today's "closing bell" expaining. michael pento from pento portfolio strategies, gene pirono, quincy crosby and our very own rick santelli. gene, let's start with you. you like financials and cyclicals here. i guess the broad message though is can we continue the strong gains that we've started the year on? >> i think so, kelly. i mean, this is not a one-day wonder. this is part of a trend that's been going on for some time. seen very good accumulation, this market especially on a non-block basis. the chart patterns are the best i've seen in my career. that's 38 years. the chart patterns depict a trend that can be sustainable and can deliver substantially higher levels. the fact that manufacturing is doing as well as it is i think bodies very positively, not just for the u.s. economy, but the economies
ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement plans, it could save you thousands in out-of-pocket costs. call now to request your free decision guide. i've been with my doctor for 12 years. now i know i'll be able to stick with him. you'll be able to visit any doctor or hospital that accepts medicare patients. plus, there are no networks, and you never need a referral. see why millions of people have already enrolled in the only medicare supplement insurance plans endorsed by aarp. don't wait. call now. >> ama: our breaking news from the south bay. san jose firefighters are battling a two-alarm fire in an important building -- an apartment building. firefighters say a second floor apartment is fully engulf
entitlement reforms be on the table in washington? the latest on medicare, next. gerri: a ticking timebomb inside the federal budget putting taxpayers on the hook for billions of dollars in defaults. at student loans, that is what i'm talking about, escalating intoou nosebleed territory with delinquencies rates at a new all-time high outstripping any other consumer debt. our student loans the new subprime loan? joining me now, spokesman for the young american foundation. thank you for joining us. we really appreciate your time. the president is talking about higher education and how it should be an economic imperative. listen to this. >> a higher education is no longer a luxury. it is an economic imperative in the 21st century. it is part of what we nee to succeed in this global economy. and i'm going to fight for every young person is willing to work hard to get an education. gerri: should everyone hava college degree? >> if i was the president, i think you might has well said let me be clear. every student should start with 30,000 dollars of debt and maybe a bankruptcy. it's absolutely a
for medicare, you might know it only covers about 80% of your part b medical expenses. the rest is up to you. call now and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement plans, they help pay some of the difference. and could save you in out-of-pocket medical costs. you'll be able to visit any doctor or hospital that accepts medicare patients. plus, there are no networks, and you never need a referral to see a specialist. so don't wait. call now to request a free decision guide to help you understand medicare. and which aarp medicare supplement plan might work best for you. there's a range to choose from, depending on your needs and your budget. and they all travel with you -- anywhere in the country. best of all, you'll be joining the millions who have already enrolled in the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations. ♪ remember, all medicare supplement insurance plans help cover some of what medicare d
and medicare from his list of priorities, and what, as my friend from tennessee pointed out, we have a $16 trillion debt. and for to us say that we're not going to do anything about spending when we all know that spending is the biggest problem we have in this agreement, again, that is throwing kerosene on the fire that's on the other side of the capitol and that's my republican colleagues on the other side of the aisle who have committed and pledged to their constituents that we will end this hemaging that -- hemorrhaging that we call spending which has given us the greatest debt in the history of this country. so i guess i would ask my colleague from south carolina, who is usually very modest and reticent in explaining his views particularly in various media outlets of his view on this situation. mr. graham: thank you, senator. i guess my first view is it's better not to go over the cliff than to go over the cliff, but it's also important, as you just said, to understand what we've accomplished. let's assume for a moment and let's hope that this is a good assumption that we reach an agre
. you know, if you take paul ryan's vote last night, plus the medicare, drug benefit plan, that's $11 trillion in new debt that paul ryan's voted for. >> yeah. >> suddenly, you know what? he's off the top of my list as a fiscal hawk because he has been a part of adding $11 trillion to the national debt, but we'll talk about it. >> could be a strong candidate for president in 2016, as a democrat. >> as a democrat. >> oh! >> $11 trillion paul ryan has now contributed to the national debt. $7 trillion in the medicare drug benefit plan, $4 trillion last night, passes the -- this is like saving yourself -- >> i didn't know you were so touchy-feely. >> let me get this great, richard haass. the republican party saves itself. they're virtuous. they save themselves for 20 years, they decide, going to be chaise, going to raise taxes, and they waited for 20 years before giving themselves away. and they did so last night on a bill that increases taxes, that doesn't cut a dime in spending in washington, d.c., which everybody knows is the real problem. everybody knows that. and third, the congressi
on medica medicare. i also have an obligation to make sure that families who rely on medicare to take care of a disabled child aren't carrying this burden entirely. i also have an obligation to middle class family toes make sure that they're not paying higher taxes when millionaires and billionaires are not having to pay higher taxes. there is a basic fairness that is at stake in this whole thing that the american people understand and they lynched to an entire year's debate about it. they made a clear decision about -- that the approach they prefer, which is a balanced, responsible package, they rejected the notion that the economy grows best from the top down, they believe that the economy grows best from the middle class out and at a certain point, you know, it is very important for republicans in congress to be willing to say we understand we're not going to get 100%. we are willing to compromise in a serious way in order to solve problems as opposed to be worrying about the next election. >> you say republicans have a hard time saying yes, particularly to you. >> yeah. >> what is it a
-- to my point, medicare, let me step back -- obamacare, i have a love, how long does this marriage have to last, relationship. it is tremendous legislation. it is astounding. people the talking for centuries about this. it is just incredible. i love it for my patients. i certainly do not want us to fall back on ryan-style vouchers for medicare. i know as a er doc that the romney solution for universal access is not in my department for many, many reasons. there is something that both republican and democratic wonks have agreed on. w's budget people agree on it. the sustainable growth rate of medicare is much more insidious and will ruin medicare long before a voucher-style system. how can you have two different parties agree on something so very fundamental and not come together and get it done? >> good question. i want to make one other point, which is that i have a love affair with the institution as well. dr. richard landau has been on the medical factor for 60 years. let me answer the medicare question and then finish. we lengthened the life of medicare by eight years with the affor
cuts, but what's to stop them from asking? what's to stop them from asking for raising the medicare rate? all these things obama put on the table. as we saw, they will go up to the edge and they have no qualms about it. we downgraded for the first time in the nation's history. i'm with you. i think it will be the hot topic and i will be followed by government funding fight within the next month. we are at the beginning of the beginning of tumultuous times. the thing about this one, it could tarng the global economy. >> i want to bring in the assistant managing editor at "time" magazine. i guess picking up on that, that seems to be the real question. what happens when you get to the negotiations over the cent ceiling and beyond that. look at the debt ceiling. republicans will be looking for serious changes whether it's raising the medicare age or something else. they will have the leverage of saying we are ready to force a catastrophic default here. seems we can't judge. the stakes in this coming fight are a lot bigger substantively than anything else. this is small potatoes. >> i co
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? can you talk about the specific impact of the deal on medicare and medicaid? >> well, in the summer when the fight over the debt ceiling happened, there was a small group from congress that was a -- was supposed to come up with the deal on cutting the deficit before the end of the year and they did not. that was pretty predictable. so what congress did and the president, they sort of tied themselves to the math. they said, ok, if we cannot come up with a deal, there are going to be automatic spending cuts of $1.25 trillion over 10 years that begin january 2013. and those spending cuts were divided equally between military -- or what they call ended securities -- that is also homeland security and other associated kinds of cuts. and nonmilitary. and thus did not or do not include medicare, social security and benefits for veterans, but all other spending federally is in there. some medicaid, farm aid, programs on the port, energy programs, etc. those cuts are between those two areas. that is part of the kicking the can down the road. it just happened because they have agreed to put o
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